Department of the Army awards $13.5M contract for construction services to BORDEAUX CONSTRUCTION COMPANY, INC

Contract Overview

Contract Amount: $13,515,517 ($13.5M)

Contractor: Bordeaux Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-06-29

End Date: 2010-02-26

Contract Duration: 973 days

Daily Burn Rate: $13.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MCAR

Place of Performance

Location: RALEIGH, WAKE County, NORTH CAROLINA, 27601

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $13.5 million to BORDEAUX CONSTRUCTION COMPANY, INC. for work described as: MCAR Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 973 days indicates a significant, long-term project. 3. The firm-fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 4. The award was made by the Department of the Army, a major federal agency. 5. The North Carolina location of the contractor may imply regional focus or capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this $13.5 million contract is challenging without specific project details or comparable contract data. However, the duration of 973 days suggests a substantial undertaking. The firm-fixed-price nature of the contract is a positive indicator for cost control, as it places the financial risk on the contractor. Further analysis would require comparing the per-square-foot cost or specific service rates against similar construction projects within the Department of Defense or other federal agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this specific award. While two bidders is better than one, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, which can drive down costs through competitive pricing.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel, who will receive the completed construction services. The services delivered are commercial and institutional building construction, essential for military infrastructure. The geographic impact is likely concentrated in North Carolina, where the contractor is based, or at the specific military installation where the construction takes place. The contract supports jobs within the construction sector, particularly for BORDEAUX CONSTRUCTION COMPANY, INC. and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bids received could mean missed opportunities for better pricing.
Lack of specific performance metrics makes it difficult to assess the contractor's track record on similar projects.
The contract's value and duration might indicate a complex project with inherent risks if not managed effectively.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential bidders.
Firm-fixed-price contract type provides cost certainty for the government.
Contractor is based in North Carolina, potentially indicating established regional presence and capabilities.

Sector Analysis

The construction sector is a significant area of federal spending, encompassing a wide range of projects from infrastructure development to facility maintenance and upgrades. This contract falls under commercial and institutional building construction, a segment that supports the operational needs of government agencies. Federal spending in construction is often driven by the need to maintain, modernize, or expand facilities critical for national defense, public services, and administrative functions. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per project for similar types of buildings constructed for federal agencies.

Small Business Impact

This contract was not awarded as a small business set-aside, and the contractor, BORDEAUX CONSTRUCTION COMPANY, INC., is not explicitly identified as a small business in the provided data. Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor may still engage small businesses as subcontractors, depending on the project's scope and their own subcontracting plans, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract, which holds the contractor responsible for delivering the specified construction within the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, though detailed project-specific oversight mechanisms and inspector general jurisdiction would depend on the specific nature and location of the construction project.

Related Government Programs

Military Construction
Facility Sustainment, Restoration, and Modernization
General Services Administration (GSA) Construction Contracts
Department of Veterans Affairs (VA) Construction Projects

Risk Flags

Limited Competition
Potential for Cost Overruns (if scope changes)
Contractor Performance Risk (long duration)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.5 million to BORDEAUX CONSTRUCTION COMPANY, INC.. MCAR

Who is the contractor on this award?

The obligated recipient is BORDEAUX CONSTRUCTION COMPANY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $13.5 million.

What is the period of performance?

Start: 2007-06-29. End: 2010-02-26.

What is the specific type of construction project awarded under this contract?

The provided data indicates the contract is for 'Commercial and Institutional Building Construction' (NAICS code 236220). However, the specific nature of the building (e.g., barracks, office building, training facility, warehouse) is not detailed. This classification suggests the project involves the construction of new buildings or the major renovation of existing ones intended for commercial or institutional use by the Department of the Army. Without further details, it's impossible to ascertain the exact purpose or scope beyond this general category.

How does the $13.5 million award compare to typical construction contract values for the Department of the Army?

The $13.5 million value for this construction contract is within a common range for significant facility projects undertaken by the Department of the Army. The Army manages a vast portfolio of real property, requiring ongoing investment in new construction, upgrades, and maintenance. While smaller projects might range from a few hundred thousand to a few million dollars, contracts in the tens of millions are typical for major building endeavors, such as new barracks, headquarters, or specialized training facilities. The specific benchmark would depend on the type of facility and its location, but $13.5 million represents a substantial, but not extraordinary, investment for a single construction award.

What are the potential risks associated with a firm-fixed-price contract of this duration (973 days)?

A firm-fixed-price (FFP) contract shifts the majority of cost risk to the contractor. For a project spanning 973 days (approximately 2.7 years), potential risks include unforeseen material cost escalations, labor shortages, or changes in regulatory requirements that could impact the contractor's profitability. If the contractor underestimated these factors during the bidding process, they might face financial strain. Conversely, the government benefits from cost certainty, assuming the scope of work remains unchanged. Effective project management and clear contract specifications are crucial to mitigate risks for both parties over such a long duration.

What does the limited number of bidders (2) suggest about the market for this type of construction service?

Receiving only two bids for a $13.5 million construction contract awarded under full and open competition could suggest several possibilities. It might indicate a specialized type of construction that limits the number of qualified contractors. Alternatively, it could reflect the specific geographic location of the project, the demanding requirements of the solicitation, or the current workload and capacity of contractors in the relevant market. A low number of bidders can sometimes lead to less competitive pricing than if more firms had participated, potentially resulting in a higher cost for the government compared to a more robustly competed contract.

What is the historical spending pattern for similar construction contracts by the Department of the Army?

The Department of the Army consistently awards a significant volume of contracts for construction services, often running into billions of dollars annually. Historical spending patterns show a continuous need for building and maintaining military infrastructure across various locations. Contracts of this magnitude ($13.5 million) are common for major facility projects. Analysis of past awards would reveal trends in contract types (FFP being prevalent), competition levels, and average contract values for specific types of construction (e.g., barracks, administrative buildings, maintenance facilities). This specific award aligns with the Army's ongoing investment in its physical assets.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912QR07R0010

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 E BRITANIA AVE, DURHAM, NC, 04

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $13,515,517

Exercised Options: $13,515,517

Current Obligation: $13,515,517

Contract Characteristics

Cost or Pricing Data: NO

Timeline